PORT ANGELES, Wash., Jan. 29, 2026 (GLOBE NEWSWIRE) -- First Northwest Bancorp (NASDAQ:FNWB) ("First Northwest" or the "Company"), the holding company for First Fed Bank ("First Fed" or the "Bank"), today reported net income of $382,000 for the fourth quarter of 2025, compared to net income of $802,000 for the third quarter of 2025 and a net loss of $2.8 million for the fourth quarter of 2024. Basic and diluted income per share were $0.04 for the fourth quarter of 2025, compared to basic and diluted income per share of $0.09 for the third quarter of 2025 and basic and diluted loss per share of $0.32 for the fourth quarter of 2024.

Management Outlook:

"As we enter 2026, we are building on momentum that began in 2025," said Curt Queyrouze, President and Chief Executive Officer of First Northwest and First Fed. "Our focus is clear: to position First Fed as a high-performing bank by leveraging data to operate more efficiently, strengthening our core deposit base and generating high-quality, relationship-based loan growth. I am encouraged by the progress our team has made and believe we are well prepared for the year ahead. The First Fed team remains committed to serving our communities and delivering exceptional service."

Other Announcements:

First Fed will permanently close its Bellevue branch, located at 1100 Bellevue Way Northeast in Bellevue, Washington, on April 30, 2026. This decision reflects the Bank's commitment to adapt to ongoing shifts in customer behavior toward digital banking services. "Customer preferences continue to evolve, and we are seeing that, for this location, the use of online and mobile banking services continues to become more prevalent than in-person visits," said Curt Queyrouze. "Closing this branch allows us to focus on streamlined delivery channels that are convenient, secure and bring innovative banking solutions to our markets." This closure is expected to reduce future annual operating expenses by approximately $900,000. First Fed purchased the Bellevue branch from Sterling Bank and Trust, FSB in July 2021. Bellevue branch customers will continue to have access to their accounts through the Bank's online and mobile platforms, ATM network and branches. First Fed remains committed to serving its communities and looks forward to continuing to provide exceptional banking experiences through multiple channels.

The Board of Directors of First Northwest did not declare a dividend for the current quarter. This decision reflects the Company's disciplined approach to capital management and its commitment to maintaining a strong balance sheet. The Board will continue to evaluate future dividend decisions in alignment with Company's long-term strategic objectives.

Fourth Quarter Insights:

•		Net interest margin increased to 3.00% for the current quarter compared to 2.91% in the third quarter of 2025, primarily as a result of a decrease in the rate paid on interest-bearing liabilities.
•		Cost of total deposits dropped to 2.12% for the current quarter from 2.20% in the preceding quarter as higher-rate certificates of deposit ("CDs") matured and rates paid on selected deposit products were lowered to align with the recent rate cuts implemented by the Federal Reserve.
•		First Fed risk-based capital ratios remained relatively stable at 13.6% for the current quarter compared to 13.7% in the third quarter of 2025, and 13.6% for the fourth quarter of 2024.
•		Brokered deposits decreased $17.9 million, or 17.1%, to $86.5 million at December 31, 2025 from $104.4 million at September 30, 2025, and decreased $96.4 million, or 52.7%, from $182.9 million at December 31, 2024.
•		Advances increased $48.5 million, or 21.6%, to $273.5 million at December 31, 2025 from $225.0 million at September 30, 2025, partially offsetting the $54.2 million decrease in deposit balances.
•		A provision for credit losses on loans of $466,000 was recorded in the fourth quarter of 2025, compared to a recapture of $620,000 for the preceding quarter and a provision for credit losses on loans of $3.8 million for the fourth quarter of 2024.

Other significant events:

•		The Bank has continued to vigorously defend the previously disclosed legal proceedings, filing its Answer and Affirmative Defenses in the Socotra REIT matter and commencing initial discovery in the 3\|5\|2 Capital matter.
•		The reimbursement from the Bank's insurance carrier discussed in the Company's previous Quarterly Report on Form 10-Q to partially offset costs associated with ongoing legal matters was received in the current quarter.

Selected Quarterly Financial Ratios:

	As of or For the Quarter Ended															As of or For the Year Ended December 31,
	December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024			2025			2024
Performance ratios:⁽¹⁾
Return on average assets		0.07	%		0.15	%		0.68	%		-1.69	%		-0.51	%		-0.20	%		-0.30	%
Adjusted PPNR return on average assets⁽²⁾		0.09			0.06			0.39			0.27			0.26			0.20			0.18
Return on average equity		0.96			2.10			10.00			-23.42			-6.92			-2.74			-4.09
Net interest margin⁽³⁾		3.00			2.91			2.83			2.76			2.73			2.88			2.74
Efficiency ratio⁽⁴⁾		92.0			104.9			78.0			113.5			92.2			97.3			87.0
Equity to total assets		7.46			7.32			6.82			6.75			6.89			7.46			6.89
Book value per common share	$	16.61		$	16.33		$	15.85		$	15.52		$	16.45		$	16.61		$	16.45
Tangible performance ratios:⁽¹⁾
Tangible common equity to tangible assets⁽²⁾		7.40	%		7.26	%		6.76	%		6.68	%		6.83	%		7.40	%		6.83	%
Return on average tangible common equity⁽²⁾		0.97			2.12			10.10			-23.65			-6.99			-2.76			-4.13
Tangible book value per common share⁽²⁾	$	16.47		$	16.18		$	15.70		$	15.36		$	16.29		$	16.47		$	16.29
Capital ratios (First Fed):⁽⁵⁾
Tier 1 leverage		9.5	%		9.3	%		9.1	%		9.0	%		9.4	%		9.5	%		9.4	%
Common equity Tier 1		12.5			12.7			12.0			12.1			12.4			12.5			12.4
Total risk-based		13.6			13.7			13.1			13.4			13.6			13.6			13.6

(1	)	Performance ratios are annualized, where appropriate.
(2	)	See reconciliation of Non-GAAP Financial Measures later in this release.
(3	)	Net interest income divided by average interest-earning assets.
(4	)	Total noninterest expense as a percentage of net interest income and total other noninterest income.
(5	)	Current period capital ratios are preliminary and subject to finalization of the FDIC Call Report.

Adjusted Pre-tax, Pre-Provision Net Revenue ⁽¹⁾

Adjusted PPNR for the fourth quarter of 2025 increased $138,000 to $478,000, compared to $340,000 for the preceding quarter, and decreased $952,000 from $1.4 million in the fourth quarter one year ago.

	For the Quarter Ended													For the Year Ended
(Dollars in thousands)	December 31, 2025		September 30, 2025			June 30, 2025		March 31, 2025			December 31, 2024			December 31, 2025			December 31, 2024
Net interest income (GAAP)	$	14,690	$	14,569		$	14,193	$	13,847		$	14,137		$	57,299		$	56,320
Total noninterest income (GAAP)		3,690		2,002			2,170		3,777			1,300			11,639			12,614
Total revenue (GAAP)		18,380		16,571			16,363		17,624			15,437			68,938			68,934
Total noninterest expense (GAAP)		16,902		17,390			12,765		20,000			14,233			67,057			59,993
PPNR (Non-GAAP)⁽¹⁾		1,478		(819	)		3,598		(2,376	)		1,204			1,881			8,941
Less: selected nonrecurring adjustments to PPNR (Non-GAAP)		1,000		(1,159	)		1,513		(3,845	)		(226	)		(2,473	)		4,872
Adjusted PPNR (Non-GAAP)⁽¹⁾	$	478	$	340		$	2,085	$	1,469		$	1,430		$	4,354		$	4,069

)

See reconciliation of Non-GAAP Financial Measures later in this release for additional information and detail.

•		Total interest income decreased $773,000 to $26.1 million for the fourth quarter of 2025, compared to $26.9 million for the preceding quarter, and decreased $2.1 million compared to $28.2 million in the fourth quarter of 2024. Interest income decreased in the fourth quarter of 2025 primarily due to decreased average balances of interest-earning assets. Average real estate and commercial business loan balances decreased while average consumer loan balances increased over the preceding quarter. The yield on interest-earning assets decreased by 3 basis points to 5.34% compared to the preceding quarter, while the effective federal funds rate decreased 45 basis points to 3.64% during the same period.
•		Total interest expense decreased $894,000 to $11.5 million for the fourth quarter of 2025, compared to $12.3 million for the preceding quarter, and decreased $2.6 million compared to $14.1 million in the fourth quarter of 2024. Interest expense decreased in the fourth quarter of 2025 primarily due to a reduced volumes of brokered CDs and decreases in interest paid on customer CDs, brokered CDs, money market and demand deposits. The current quarter decreases were partially offset by increases in the average balances and interest paid on savings accounts. Reduced volumes and lower rates paid on borrowings contributed to lower interest expense during the current quarter.
•		Net interest margin increased to 3.00% for the fourth quarter of 2025, from 2.91% for the preceding quarter and 2.73% for the fourth quarter of 2024, marking six consecutive quarters of improvement for a total increase of 30 basis points over that period.
•		Noninterest income increased $1.7 million to $3.7 million for the fourth quarter of 2025, from $2.0 million for the preceding quarter. A $1.7 million reimbursement from the Bank's insurance carrier to offset expenses paid in previous quarters associated with ongoing legal matters was recorded in other income during the current quarter.
•		Noninterest expense decreased $488,000 to $16.9 million for the fourth quarter of 2025, compared to $17.4 million for the preceding quarter. Legal fees recorded in professional fees decreased $922,000 from the preceding quarter, which included higher fees related to the ongoing legal matters previously disclosed. The decrease in legal fees was partially offset by $681,000 of expenses related to the upcoming branch closure recorded in compensation and other expense.

Allowance for Credit Losses on Loans ("ACLL") and Credit Quality

The allowance for credit losses on loans ("ACLL") increased $784,000 to $17.0 million at December 31, 2025, from $16.2 million at September 30, 2025. The ACLL as a percentage of total loans was 1.04% at December 31, 2025, an increase from 1.00% at September 30, 2025, and a decrease from 1.21% one year earlier. A $466,000 provision expense for the quarter ended December 31, 2025, was the result of $318,000 in net recoveries, partially offset by a $636,000 increase in the overall pooled loan reserve, driven by increased loss factors applied to commercial real estate and commercial business loans, and increased reserves on individually analyzed loans totaling $151,000.

Nonperforming loans increased $9.2 million to $22.6 million at December 31, 2025, from $13.4 million at September 30, 2025. Current quarter activity included transition into nonaccrual status of a $6.3 million commercial real estate loan and four commercial business loans totaling $4.7 million. The recorded balances of the commercial business loans are fully supported by collateral and SBA guarantees. A $1.0 million charge-off on a commercial construction loan that was already on nonaccrual status partially offset the loans that transitioned into nonaccrual status during the quarter. ACLL to nonperforming loans decreased to 75% at December 31, 2025, from 121% at September 30, 2025, and increased from 67% at December 31, 2024. This ratio decreased primarily due to the higher balance of nonperforming loan balances compared to the preceding quarter.

Classified loans decreased $1.1 million to $22.8 million at December 31, 2025, from $23.9 million at September 30, 2025, primarily due to net recoveries on previously charged-off loans totaling $436,000 partially offset by downgrades of commercial business loans totaling $924,000 and other consumer loans totaling $429,000. Three collateral-dependent loans totaling $14.9 million account for 65% of the classified loan balance at December 31, 2025. The Bank has exercised legal remedies, including the appointment of a third-party receiver and foreclosure actions, to liquidate the underlying collateral to satisfy the real estate loans in the second largest of these collateral-dependent relationships.

	For the Quarter Ended
ACLL ($ in thousands)	December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024

Balance at beginning of period	$	16,203		$	18,345		$	20,569		$	20,449		$	21,970
Charge-offs:
Commercial real estate		(329	)		(656	)		(15	)		(5,571	)		—
Construction and land		(1,027	)		(483	)		—			(374	)		(411	)
Auto and other consumer		(123	)		(106	)		(273	)		(243	)		(364	)
Commercial business		(964	)		(1,005	)		(2,823	)		(1,513	)		(4,596	)
Total charge-offs		(2,443	)		(2,250	)		(3,111	)		(7,701	)		(5,371	)
Recoveries:
Commercial real estate		—			6			20			6			2
Construction and land		—			—			5			—			—
Auto and other consumer		34			47			74			43			52
Commercial business		2,727			675			1,084			2			36
Total recoveries		2,761			728			1,183			51			90
Net loan recoveries (charge-offs)		318			(1,522	)		(1,928	)		(7,650	)		(5,281	)
Provision for (recapture of) credit losses		466			(620	)		(296	)		7,770			3,760
Balance at end of period	$	16,987		$	16,203		$	18,345		$	20,569		$	20,449

Average total loans	$	1,622,476		$	1,650,340		$	1,658,723		$	1,662,095		$	1,708,232
Annualized net (recoveries) charge-offs to average outstanding loans		-0.08	%		0.37	%		0.47	%		1.87	%		1.23	%

Asset Quality ($ in thousands)	December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024
Nonaccrual loans:
One-to-four family	$	2,272		$	2,345		$	2,274		$	1,404		$	1,477
Commercial real estate		9,745			3,439			4,095			4			5,598
Construction and land		5,146			6,037			13,063			15,280			19,544
Home equity		53			9			10			54			55
Auto and other consumer		1,086			1,072			410			710			700
Commercial business		4,293			470			514			2,903			3,141
Total nonaccrual loans		22,595			13,372			20,366			20,355			30,515
Other real estate owned		1,380			1,377			1,297			—			—
Total nonperforming assets	$	23,975		$	14,749		$	21,663		$	20,355		$	30,515

Nonaccrual loans as a % of total loans⁽¹⁾		1.39	%		0.82	%		1.22	%		1.23	%		1.80	%
Nonperforming assets as a % of total assets⁽²⁾		1.14			0.70			0.99			0.94			1.37
ACLL as a % of total loans		1.04			1.00			1.10			1.24			1.21
ACLL as a % of nonaccrual loans		75.18			121.17			90.08			101.05			67.01
Total past due loans to total loans		1.21			0.88			1.17			1.36			1.98

(1	)	Nonperforming loans consists of nonaccruing loans and accruing loans more than 90 days past due.
(2	)	Nonperforming assets consists of nonperforming loans (which include nonaccruing loans and accruing loans more than 90 days past due), real estate owned and repossessed assets.

Financial Condition and Capital

Investment securities decreased $12.3 million, or 4.4%, to $270.3 million at December 31, 2025, compared to $282.6 million three months earlier, and decreased $70.0 million compared to $340.3 million at December 31, 2024. Maturities totaling $8.8 million and regular principal payments totaling $5.9 million were partially offset by a $2.4 million reduction of net unrealized losses during the fourth quarter of 2025. The estimated average life of the securities portfolio was approximately 6.5 years at December 31, 2025, 6.9 years at the preceding quarter end and 6.9 years at the end of the fourth quarter of 2024. The effective duration of the portfolio was approximately 4.6 years at December 31, 2025, compared to 4.8 years at the preceding quarter end and 3.9 years at the end of the fourth quarter of 2024.

Investment Securities ($ in thousands)		December 31, 2025		September 30, 2025		December 31, 2024	Three Month % Change		One Year % Change
Available for Sale at Fair Value
Municipal bonds	$	80,252	$	79,621	$	77,876	0.8	%	3.1	%
U.S. government agency issued asset-backed securities (ABS agency)		11,943		12,169		12,876	-1.9		-7.2
Corporate issued asset-backed securities (ABS corporate)		7,961		9,881		16,122	-19.4		-50.6
Corporate issued debt securities (Corporate debt)		38,801		43,339		54,491	-10.5		-28.8
U.S. Small Business Administration securities (SBA)		6,293		6,977		8,666	-9.8		-27.4
Mortgage-backed securities:
U.S. government agency issued mortgage-backed securities (MBS agency)		91,656		94,203		98,697	-2.7		-7.1
Non-agency issued mortgage-backed securities (MBS non-agency)		33,404		36,418		71,616	-8.3		-53.4
Total securities available for sale	$	270,310	$	282,608	$	340,344	-4.4		-20.6

Net loans, excluding loans held for sale, increased $4.2 million, or 0.3%, to $1.6 billion at December 31, 2025, from $1.6 billion at September 30, 2025, and decreased $63.2 million, or 3.8%, from $1.7 billion one year prior. Construction loans that converted into fully amortizing loans during the quarter totaled $9.0 million. New loan funding totaling $102.6 million and draws on existing loans totaling $19.5 million outpaced loan payoffs of $78.1 million, regular payments of $36.8 million and charge-offs totaling $2.4 million.

Loans ($ in thousands)		December 31, 2025			September 30, 2025			December 31, 2024	Three Month % Change		One Year % Change
Real Estate:
One-to-four family	$	376,731		$	382,486		$	395,315	-1.5	%	-4.7	%
Multi-family		288,529			296,321			332,596	-2.6		-13.2
Commercial real estate		402,683			396,519			390,379	1.6		3.2
Construction and land		61,268			67,793			78,110	-9.6		-21.6
Total real estate loans		1,129,211			1,143,119			1,196,400	-1.2		-5.6
Consumer:
Home equity		85,088			86,629			79,054	-1.8		7.6
Auto and other consumer		283,502			280,224			268,876	1.2		5.4
Total consumer loans		368,590			366,853			347,930	0.5		5.9
Commercial business		130,311			113,160			151,493	15.2		-14.0
Total loans receivable		1,628,112			1,623,132			1,695,823	0.3		-4.0
Less:
Derivative basis adjustment		(903	)		(896	)		188	-0.8		-580.3
Allowance for credit losses on loans		16,987			16,203			20,449	4.8		-16.9
Total loans receivable, net	$	1,612,028		$	1,607,825		$	1,675,186	0.3		-3.8

Other changes to total assets during the quarter included a $2.2 million increase in the balance of FHLB stock required to be held. There was also a $1.7 million decrease in accrued interest receivable primarily due to interest payments received during the current quarter for maritime loans and investment securities.

Total deposits decreased $54.2 million to $1.6 billion at December 31, 2025, compared to $1.7 billion at September 30, 2025, and decreased $88.9 million compared to $1.7 billion one year prior. During the fourth quarter of 2025, total customer deposit balances decreased $36.4 million and brokered deposit balances decreased $17.9 million. The customer deposit mix shifted towards increased average savings account balances while average balances of all other customer accounts decreased. The rates paid on customer interest-bearing deposits decreased 10 basis points to 2.37% for the current quarter, compared to 2.47% for the third quarter of 2025. The deposit mix compared to December 31, 2024, reflects a shift in average balances of customer accounts to savings and money market accounts from demand deposit and CD accounts, with an overall $5.2 million increase to average customer balances. A $99.2 million decrease in the average balance of brokered CDs was the main driver for the year-over-year decrease in total deposits. Rates paid on interest-bearing deposit accounts decreased 53 basis points compared to the same quarter one year ago.

Deposits ($ in thousands)		December 31, 2025		September 30, 2025		December 31, 2024	Three Month % Change		One Year % Change
Noninterest-bearing demand deposits	$	245,760	$	255,366	$	256,416	-3.8	%	-4.2	%
Interest-bearing demand deposits		143,166		146,373		164,891	-2.2		-13.2
Money market accounts		451,143		475,614		413,822	-5.1		9.0
Savings accounts		239,258		232,831		205,055	2.8		16.7
Certificates of deposit, customer		433,264		438,780		464,928	-1.3		-6.8
Certificates of deposit, brokered		86,510		104,363		182,914	-17.1		-52.7
Total deposits	$	1,599,101	$	1,653,327	$	1,688,026	-3.3		-5.3

Total shareholders' equity increased to $157.3 million at December 31, 2025, compared to $154.5 million three months earlier, due to an increase in the after-tax fair market values of the available-for-sale investment securities portfolio of $1.9 million and net income of $382,000. No shares of common stock were repurchased under the Company's April 2024 Stock Repurchase Plan (the "Repurchase Plan") during the quarter ended December 31, 2025. There are 846,123 shares that remain available for repurchase under the Repurchase Plan.

Capital levels for both the Company and the Bank remain in excess of applicable regulatory requirements and the Bank was categorized as "well-capitalized" at December 31, 2025. Preliminary calculations of Common Equity Tier 1 and Total Risk-Based Capital Ratios at December 31, 2025, for the Bank were 12.5% and 13.6%, respectively.

2025 Awards/Recognition
						Sound Publishing:
Forbes Best-in-State Banks						Best Bank in Clallam County
Bellingham Best of the Northwest - Best Bank Silver						Best Lender in Clallam County and West End

About the Company

First Northwest Bancorp (NASDAQ:FNWB) is a financial holding company engaged in investment activities including the business of its subsidiary, First Fed Bank. First Fed is a Pacific Northwest-based financial institution which has served its customers and communities since 1923. Currently First Fed has 17 locations in Washington state including 12 full-service branches. First Fed's business and operating strategy is focused on building sustainable earnings by delivering a full array of financial products and services for individuals, small businesses, non-profit organizations and commercial customers. First Northwest has also strategically invested in partnerships focused on developing modern financial solutions and a boutique investment banking/accelerator firm. These investments underscore the Company's commitment to innovation and growth in the financial services sector. First Northwest Bancorp was incorporated in 2012 and completed its initial public offering in 2015 under the ticker symbol FNWB. The Company is headquartered in Port Angeles, Washington.

Forward-Looking Statements

Certain matters discussed in this press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to, among other things, expectations of the business environment in which we operate, projections of future performance and execution on certain strategies, perceived opportunities in the market, potential future credit experience, including our ability to collect, the outcome of litigation and statements regarding our mission and vision, and include, but are not limited to, statements about our plans, objectives, expectations and intentions that are not historical facts, and other statements often identified by words such as "believes," "expects," "anticipates," "estimates," or similar expressions. These forward-looking statements are based upon current management beliefs and expectations and may, therefore, involve risks and uncertainties, many of which are beyond our control. Our actual results, performance, or achievements may differ materially from those suggested, expressed, or implied by forward-looking statements as a result of a wide variety of factors including, but not limited to: increased competitive pressures; changes in the interest rate environment; the credit risks of lending activities; pressures on liquidity, including as a result of withdrawals of deposits or declines in the value of our investment portfolio; changes in general economic conditions and conditions within the securities markets, including potential recessionary and other unfavorable conditions and trends relating to housing markets, unemployment levels, interest rates and inflationary pressures, among other things; legislative, regulatory, and policy changes; legal proceedings, regulatory investigations and their resolutions; and other factors described in the Company's latest Annual Report on Form 10-K under the section entitled "Risk Factors," and other filings with the Securities and Exchange Commission ("SEC"),which are available on our website at www.ourfirstfed.com and on the SEC's website at www.sec.gov.

Any of the forward-looking statements that we make in this press release and in the other public statements we make may turn out to be incorrect because of the inaccurate assumptions we might make, because of the factors illustrated above or because of other factors that we cannot foresee. Because of these and other uncertainties, our actual future results may be materially different from those expressed or implied in any forward-looking statements made by or on our behalf and the Company's operating and stock price performance may be negatively affected. Therefore, these factors should be considered in evaluating the forward-looking statements, and undue reliance should not be placed on such statements. We do not undertake and specifically disclaim any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. These risks could cause our actual results for 2025 and beyond to differ materially from those expressed in any forward-looking statements by, or on behalf of, us and could negatively affect the Company's operations and stock price performance.

For More Information Contact:

Curt Queyrouze, President and Chief Executive Officer

Phyllis Nomura, Chief Financial Officer and EVP

IRGroup@ourfirstfed.com

360-457-0461

FIRST NORTHWEST BANCORP AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS (Dollars in thousands, except share data) (Unaudited)

	December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024
ASSETS
Cash and due from banks	$	15,530		$	15,688		$	18,487		$	18,911		$	16,811
Interest-earning deposits in banks		69,587			63,482			69,376			51,412			55,637
Investment securities available for sale, at fair value (amortized cost at each period end of $295,849, $310,545, $336,206, $348,249 and $376,265)		270,310			282,608			303,515			315,433			340,344
Loans held for sale		1,063			2,154			1,557			2,940			472
Loans receivable (net of allowance for credit losses on loans at each period end of $16,987, $16,203, $18,345, $20,569, and $20,449)		1,612,028			1,607,825			1,647,217			1,637,573			1,675,186
Federal Home Loan Bank (FHLB) stock, at cost		13,105			10,856			14,906			13,106			14,435
Accrued interest receivable		6,498			8,160			8,305			8,319			8,159
Premises and equipment, net		8,464			8,788			8,999			9,870			10,129
Servicing rights on sold loans, at fair value		3,014			3,093			3,220			3,301			3,281
Bank-owned life insurance ("BOLI"), net		42,382			41,889			41,380			31,786			41,150
Equity and partnership investments		15,489			15,048			14,811			15,026			13,229
Goodwill and other intangible assets, net		1,062			1,080			1,081			1,082			1,082
Deferred tax asset, net		13,638			14,168			14,266			14,304			13,738
Right-of-use ("ROU") asset, net		15,596			15,494			15,772			16,687			17,001
Prepaid expenses and other assets		20,129			21,040			32,471			31,680			21,352
Total assets	$	2,107,895		$	2,111,373		$	2,195,363		$	2,171,430		$	2,232,006

LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits	$	1,599,101		$	1,653,327		$	1,654,636		$	1,666,068		$	1,688,026
Borrowings		308,143			259,625			344,108			307,091			336,014
Accrued interest payable		1,223			1,145			1,514			2,163			3,295
Lease liability, net		16,439			16,071			16,257			17,266			17,535
Accrued expenses and other liabilities		24,301			24,321			27,790			29,767			31,770
Advances from borrowers for taxes and insurance		1,424			2,356			1,325			2,583			1,484
Total liabilities		1,950,631			1,956,845			2,045,630			2,024,938			2,078,124

Shareholders' Equity
Preferred stock, $0.01 par value, authorized 5,000,000 shares, no shares issued or outstanding		—			—			—			—			—
Common stock, $0.01 par value, 75,000,000 shares authorized; issued and outstanding at each period end: 9,467,925; 9,462,150; 9,444,963; 9,440,618; and 9,353,348		95			94			94			94			93
Additional paid-in capital		93,803			93,646			93,595			93,450			93,357
Retained earnings		91,699			91,317			90,506			87,506			97,198
Accumulated other comprehensive loss, net of tax		(22,398	)		(24,429	)		(28,198	)		(28,129	)		(30,172	)
Unearned employee stock ownership plan (ESOP) shares		(5,935	)		(6,100	)		(6,264	)		(6,429	)		(6,594	)
Total shareholders' equity		157,264			154,528			149,733			146,492			153,882
Total liabilities and shareholders' equity	$	2,107,895		$	2,111,373		$	2,195,363		$	2,171,430		$	2,232,006

FIRST NORTHWEST BANCORP AND SUBSIDIARY CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except per share data) (Unaudited)

	For the Quarter Ended														For the Year Ended
	December 31, 2025		September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024			December 31, 2025			December 31, 2024
INTEREST INCOME
Interest and fees on loans receivable	$	22,431	$	22,814		$	22,814		$	22,231		$	23,716		$	90,290		$	93,752
Interest on investment securities		2,971		3,244			3,466			3,803			3,658			13,484			15,025
Interest on deposits in banks		473		570			520			482			550			2,045			2,348
FHLB dividends		262		282			331			307			273			1,182			1,215
Total interest income		26,137		26,910			27,131			26,823			28,197			107,001			112,340
INTEREST EXPENSE
Deposits		8,648		9,083			9,552			9,737			11,175			37,020			42,427
Borrowings		2,799		3,258			3,386			3,239			2,885			12,682			13,593
Total interest expense		11,447		12,341			12,938			12,976			14,060			49,702			56,020
Net interest income		14,690		14,569			14,193			13,847			14,137			57,299			56,320
PROVISION FOR CREDIT LOSSES
Provision for (recapture of) credit losses on loans		466		(620	)		(296	)		7,770			3,760			7,320			16,716
Provision for (recapture of) credit losses on unfunded commitments		97		(53	)		(64	)		15			(105	)		(5	)		(218	)
Provision for (recapture of) credit losses		563		(673	)		(360	)		7,785			3,655			7,315			16,498
Net interest income after provision for (recapture of) credit losses		14,127		15,242			14,553			6,062			10,482			49,984			39,822
NONINTEREST INCOME
Loan and deposit service fees		1,044		1,114			1,095			1,106			1,054			4,359			4,291
Sold loan servicing fees and servicing rights mark-to-market		57		85			92			195			(115	)		429			188
Net gain (loss) on sale of loans		96		(39	)		44			11			52			112			312
Net gain on sale of investment securities		—		—			—			—			—			—			(2,117	)
Net gain on sale of premises and equipment		—		—			—			—			—			—			7,919
Increase in BOLI cash surrender value		493		539			485			372			328			1,889			1,179
Income from BOLI death benefit, net		—		—			—			1,059			1,536			1,059			1,536
Other income (loss)		2,000		303			454			1,034			(1,555	)		3,791			(694	)
Total noninterest income		3,690		2,002			2,170			3,777			1,300			11,639			12,614
NONINTEREST EXPENSE
Compensation and benefits		8,042		8,353			4,698			7,715			7,367			28,808			32,665
Data processing		1,990		1,941			1,926			2,011			2,065			7,868			8,102
Occupancy and equipment		1,539		1,505			1,507			1,592			1,559			6,143			6,151
Supplies, postage, and telephone		332		344			346			298			296			1,320			1,266
Regulatory assessments and state taxes		688		558			501			479			460			2,226			1,978
Advertising		290		282			299			265			362			1,136			1,457
Professional fees		1,957		2,668			1,449			777			813			6,851			3,105
FDIC insurance premium		424		411			463			434			491			1,732			1,883
Other expense		1,640		1,328			1,576			6,429			820			10,973			3,386
Total noninterest expense		16,902		17,390			12,765			20,000			14,233			67,057			59,993
Income (loss) before provision (benefit) for income taxes		915		(146	)		3,958			(10,161	)		(2,451	)		(5,434	)		(7,557	)
Provision (benefit) for income taxes		533		(948	)		297			(1,125	)		359			(1,243	)		(944	)
Net income (loss)	$	382	$	802		$	3,661		$	(9,036	)	$	(2,810	)	$	(4,191	)	$	(6,613	)

Basic and diluted earnings (loss) per common share	$	0.04	$	0.09		$	0.42		$	(1.03	)	$	(0.32	)	$	(0.48	)	$	(0.75	)

FIRST NORTHWEST BANCORP AND SUBSIDIARY ADDITIONAL INFORMATION (Dollars in thousands) (Unaudited)

Selected Loan Detail	December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025		December 31, 2024
Construction and land loans breakout
1-4 Family construction	$	21,954	$	29,961	$	39,040	$	42,371	$	39,319
Multifamily construction		10,109		15,660		14,728		9,223		15,407
Nonresidential construction		23,005		16,484		12,832		7,229		16,857
Land and development		6,200		5,688		5,938		6,054		6,527
Total construction and land loans	$	61,268	$	67,793	$	72,538	$	64,877	$	78,110

Auto and other consumer loans breakout
Triad Manufactured Home loans	$	132,287	$	133,425	$	135,537	$	134,740	$	128,231
Woodside auto loans		137,678		131,800		127,828		118,972		117,968
First Help auto loans		8,491		9,561		11,221		13,012		14,283
Other auto loans		586		767		1,016		1,313		1,647
Other consumer loans		4,460		4,671		5,275		5,841		6,747
Total auto and other consumer loans	$	283,502	$	280,224	$	280,877	$	273,878	$	268,876

Commercial business loans breakout
Northpointe Bank MPP	$	18,941	$	-	$	-	$	-	$	36,230
Secured lines of credit		39,783		43,081		41,043		39,986		35,701
Unsecured lines of credit		2,901		2,580		2,551		2,030		1,717
SBA loans		5,645		6,347		6,618		6,889		7,044
Other commercial business loans		63,041		61,152		67,631		70,878		70,801
Total commercial business loans	$	130,311	$	113,160	$	117,843	$	119,783	$	151,493

Loans by Collateral and Unfunded Commitments	December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025		December 31, 2024

One-to-four family construction	$	23,815	$	31,627	$	40,509	$	38,221	$	44,468
All other construction and land		37,334		36,161		36,129		30,947		34,290
One-to-four family first mortgage		431,222		415,670		420,847		428,081		466,046
One-to-four family junior liens		21,003		20,568		20,116		15,155		15,090
One-to-four family revolving open-end		56,365		58,486		57,502		51,832		51,481
Commercial real estate, owner occupied:
Health care		28,488		28,794		29,091		29,386		29,129
Office		19,216		18,499		19,116		19,363		17,756
Warehouse		7,608		7,684		7,432		9,272		14,948
Other		71,313		73,562		74,364		74,915		78,170
Commercial real estate, non-owner occupied:
Office		40,311		40,917		42,198		41,885		49,417
Retail		50,494		50,839		51,708		50,737		49,591
Hospitality		63,113		63,953		64,308		62,226		61,919
Other		112,307		106,991		93,505		93,549		81,640
Multi-family residential		289,581		297,379		330,784		339,217		333,419
Commercial business loans		66,264		68,062		73,403		75,628		77,381
Commercial agriculture and fishing loans		25,842		23,346		22,443		22,914		21,833
State and political subdivision obligations		333		369		369		369		369
Consumer automobile loans		146,708		142,064		139,992		133,209		133,789
Consumer loans secured by other assets		134,826		136,073		138,378		137,619		131,429
Consumer loans unsecured		1,969		2,088		2,508		3,051		3,658
Total loans	$	1,628,112	$	1,623,132	$	1,664,702	$	1,657,576	$	1,695,823

Unfunded commitments under lines of credit or existing loans	$	167,489	$	158,118	$	166,589	$	175,100	$	163,827

FIRST NORTHWEST BANCORP AND SUBSIDIARY NET INTEREST MARGIN ANALYSIS (Dollars in thousands) (Unaudited)

	Three Months Ended December 31,
	2025								2024
	Average			Interest					Average			Interest
	Balance			Earned/		Yield/			Balance			Earned/		Yield/
	Outstanding			Paid		Rate			Outstanding			Paid		Rate
	(Dollars in thousands)
Interest-earning assets:
Loans receivable, net^{(1) (2)}	$	1,606,056		$	22,431		5.54	%	$	1,688,239		$	23,716		5.59	%
Total investment securities		276,724			2,971		4.26			313,759			3,658		4.64
FHLB dividends		11,117			262		9.35			11,762			273		9.23
Interest-earning deposits in banks		46,878			473		4.00			45,358			550		4.82
Total interest-earning assets⁽³⁾		1,940,775			26,137		5.34			2,059,118			28,197		5.45
Noninterest-earning assets		142,993								146,384
Total average assets	$	2,083,768							$	2,205,502
Interest-bearing liabilities:
Interest-bearing demand deposits	$	141,128		$	63		0.18		$	162,954		$	210		0.51
Money market accounts		459,821			2,625		2.26			442,481			2,773		2.49
Savings accounts		237,396			884		1.48			206,605			721		1.39
Certificates of deposit, customer		440,018			4,079		3.68			461,136			4,925		4.25
Certificates of deposit, brokered		92,771			997		4.26			192,018			2,546		5.27
Total interest-bearing deposits⁽⁴⁾		1,371,134			8,648		2.50			1,465,194			11,175		3.03
Advances		230,033			2,454		4.23			236,576			2,491		4.19
Subordinated debt		34,634			345		3.95			39,504			394		3.97
Total interest-bearing liabilities		1,635,801			11,447		2.78			1,741,274			14,060		3.21
Noninterest-bearing deposits⁽⁴⁾		247,496								256,715
Other noninterest-bearing liabilities		42,883								45,953
Total average liabilities		1,926,180								2,043,942
Average equity		157,588								161,560
Total average liabilities and equity	$	2,083,768							$	2,205,502

Net interest income				$	14,690							$	14,137
Net interest rate spread							2.56								2.24
Net earning assets	$	304,974							$	317,844
Net interest margin⁽⁵⁾							3.00								2.73
Average interest-earning assets to average interest-bearing liabilities		118.6	%							118.3	%

(1	)	The average loans receivable, net balances include nonaccrual loans.
(2	)	Interest earned on loans receivable includes net deferred (costs) fees of ($409,000) and $103,000 for the three months ended December 31, 2025 and 2024, respectively.
(3	)	Includes interest-earning deposits (cash) at other financial institutions.
(4	)	Cost of all deposits, including noninterest-bearing demand deposits, was 2.12% and 2.58% for the three months ended December 31, 2025 and 2024, respectively.
(5	)	Net interest income divided by average interest-earning assets.

FIRST NORTHWEST BANCORP AND SUBSIDIARY

ADDITIONAL INFORMATION

(Dollars in thousands) (Unaudited)

Non-GAAP Financial Measures

This press release contains financial measures that are not in conformity with generally accepted accounting principles in the United States of America ("GAAP"). Non-GAAP measures are presented where management believes the information will help investors understand the Company's results of operations or financial position and assess trends. Where non-GAAP financial measures are used, the comparable GAAP financial measure is also provided. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, and are not necessarily comparable to non-GAAP performance measures that may be presented by other companies. Other banking companies may use names similar to those the Company uses for the non-GAAP financial measures the Company discloses, but may calculate them differently. Investors should understand how the Company and other companies each calculate their non-GAAP financial measures when making comparisons. Reconciliations of the GAAP and non-GAAP measures are presented below.

Calculations Based on PPNR and Adjusted PPNR:

	For the Quarter Ended															For the Year Ended
(Dollars in thousands)	December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024			December 31, 2025			December 31, 2024

Net income (loss) (GAAP)	$	382		$	802		$	3,661		$	(9,036	)	$	(2,810	)	$	(4,191	)	$	(6,613	)
Plus: provision for (recapture of) credit losses (GAAP)		563			(673	)		(360	)		7,785			3,655			7,315			16,498
Provision (benefit) for income taxes (GAAP)		533			(948	)		297			(1,125	)		359			(1,243	)		(944	)
PPNR (Non-GAAP)⁽¹⁾		1,478			(819	)		3,598			(2,376	)		1,204			1,881			8,941
Less selected nonrecurring adjustments to PPNR (Non-GAAP):
Insurance reimbursement included in other income		1,681			—			—			—			—			1,681			—
Branch closure costs included in compensation and other expense		(681	)		—			—			—			—			(663	)		—
Executive transition costs included in compensation and professional fees		—			(1,159	)		—			—			—			(1,159	)		—
Employee retention credit ("ERC") included in compensation		—			—			2,640			—			—			2,640			—
ERC consulting expense included in professional fees		—			—			(528	)		—			—			(528	)		—
Costs associated with early termination of Bellevue Business Center lease included in other expense		—			—			(599	)		—			—			(599	)		—
Bank-owned life insurance ("BOLI") death benefit		—			—			—			1,059			1,536			1,059			1,536
Gain on extinguishment of subordinated debt included in other income		—			—			—			846			—			846			—
Legal reserve included in other expense		—			—			—			(5,750	)		—			(5,750	)		—
Equity investment repricing adjustment included in other income		—			—			—			—			(1,762	)		—			(1,111	)
One-time compensation payouts related to reduction in force		—			—			—			—			—			—			(996	)
Net gain on sale of premises and equipment related to sale-leaseback		—			—			—			—			—			—			7,919
Sale leaseback taxes and assessments included in occupancy and equipment		—			—			—			—			—			—			(359	)
Net gain on sale of investment securities		—			—			—			—			—			—			(2,117	)
Adjusted PPNR (Non-GAAP)⁽¹⁾	$	478		$	340		$	2,085		$	1,469		$	1,430		$	4,354		$	4,069

Average total assets (GAAP)	$	2,083,768		$	2,135,409		$	2,164,579		$	2,174,748		$	2,205,502		$	2,139,358		$	2,200,138
GAAP Ratio:
Return on average assets (GAAP)		0.07	%		0.15	%		0.68	%		-1.69	%		-0.51	%		-0.20	%		-0.30	%
Non-GAAP Ratios:
PPNR return on average assets (Non-GAAP)⁽¹⁾		0.28	%		-0.15	%		0.67	%		-0.44	%		0.22	%		0.09	%		0.41	%
Adjusted PPNR return on average assets (Non-GAAP)⁽¹⁾		0.09	%		0.06	%		0.39	%		0.27	%		0.26	%		0.20	%		0.18	%

(1	)	PPNR removes the provisions for credit loss and income tax from net income. This removes potentially volatile estimates, providing a comparative amount limited to income and expense recorded during the period. Adjusted PPNR further removes large nonrecurring transactions recorded during the period. We believe these metrics provide comparative amounts for a better review of recurring net revenue.

FIRST NORTHWEST BANCORP AND SUBSIDIARY

ADDITIONAL INFORMATION

(Dollars in thousands) (Unaudited)

Calculations Based on Tangible Common Equity:

	For the Quarter Ended															For the Year Ended
(Dollars in thousands, except per share data)	December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024			December 31, 2025			December 31, 2024

Total shareholders' equity	$	157,264		$	154,528		$	149,733		$	146,492		$	153,882		$	157,264		$	153,882
Less: Goodwill and other intangible assets		1,062			1,080			1,081			1,082			1,082			1,062			1,082
Disallowed non-mortgage loan servicing rights		302			317			372			415			423			302			423
Total tangible common equity	$	155,900		$	153,131		$	148,280		$	144,995		$	152,377		$	155,900		$	152,377

Total assets	$	2,107,895		$	2,111,373		$	2,195,363		$	2,171,430		$	2,232,006		$	2,107,895		$	2,232,006
Less: Goodwill and other intangible assets		1,062			1,080			1,081			1,082			1,082			1,062			1,082
Disallowed non-mortgage loan servicing rights		302			317			372			415			423			302			423
Total tangible assets	$	2,106,531		$	2,109,976		$	2,193,910		$	2,169,933		$	2,230,501		$	2,106,531		$	2,230,501

Average shareholders' equity	$	157,588		$	151,376		$	146,857		$	156,470		$	161,560		$	153,063		$	161,742
Less: Average goodwill and other intangible assets		1,080			1,081			1,081			1,082			1,083			1,081			1,084
Average disallowed non-mortgage loan servicing rights		317			371			415			423			489			381			494
Total average tangible common equity	$	156,191		$	149,924		$	145,361		$	154,965		$	159,988		$	151,601		$	160,164

Net income (loss)	$	382		$	802		$	3,661		$	(9,036	)	$	(2,810	)	$	(4,191	)	$	(6,613	)
Common shares outstanding		9,467,925			9,462,150			9,444,963			9,440,618			9,353,348			9,467,925			9,353,348
GAAP Ratios:
Equity to total assets		7.46	%		7.32	%		6.82	%		6.75	%		6.89	%		7.46	%		6.89	%
Return on average equity		0.96	%		2.10	%		10.00	%		-23.42	%		-6.92	%		-2.74	%		-4.09	%
Book value per common share	$	16.61		$	16.33		$	15.85		$	15.52		$	16.45		$	16.61		$	16.45
Non-GAAP Ratios:
Tangible common equity to tangible assets⁽¹⁾		7.40	%		7.26	%		6.76	%		6.68	%		6.83	%		7.40	%		6.83	%
Return on average tangible common equity⁽¹⁾		0.97	%		2.12	%		10.10	%		-23.65	%		-6.99	%		-2.76	%		-4.13	%
Tangible book value per common share⁽¹⁾	$	16.47		$	16.18		$	15.70		$	15.36		$	16.29		$	16.47		$	16.29

)

We believe that the use of tangible equity and tangible assets improves the comparability to other institutions that have not engaged in acquisitions that resulted in recorded goodwill and other intangibles.

Photos accompanying this announcement are available at:

https://www.globenewswire.com/NewsRoom/AttachmentNg/d3a6468f-4c55-4761-a717-34818584fa19

https://www.globenewswire.com/NewsRoom/AttachmentNg/e85de603-f6c1-461a-a7da-ac24fafd246c

https://www.globenewswire.com/NewsRoom/AttachmentNg/25fa62f5-48bc-407d-9a32-934aaf92231a

https://www.globenewswire.com/NewsRoom/AttachmentNg/950f6f55-fd89-4f16-84bf-3eb5f356b96a

First Northwest Bancorp Announces Fourth Quarter 2025 Results